The aggregate supply curve slopes upward because firms
A)seek to maximize profits and output.
B)normally can purchase inputs at fixed prices.
C)employ technology, which is always fixed.
D)purchase inputs whose prices rise as output rises.

Question

Quizplus · Accepted Answer

Firms can often purchase inputs at fixed prices in the short run, allowing them to increase output and profits as prices rise, leading to an upward-sloping aggregate supply curve.

The Aggregate Supply Curve Slopes Upward Because Firms